marc:
Amen, NPR. I think Cash for Clunkers is a terrible idea.
We are literally destroying working products to buy new ones. Did we learn nothing from WALL-E? I love this quote from the NPR story: “Consider a similar program to replace old light bulbs with more efficient ones. … Would you smash the old bulbs?” Ugh.
Not to mention that the recession was caused (no matter what any political party says) by people buying things they can’t afford. Cash for clunkers is only bound to increase this, as rewarding people for spending money on overvalued items cannot possibly increase financial responsibility. A new car drops in value on the average about 30% the second you drive it off the lot, ensuring that people have paid too much for the car seconds after they own it, not to mention that people who have wisely been saving their cash in this recession are now being encouraged to spend it.
ramifications of Cash for Clunkers as I see them:
1. People driving lower-gas-mileage cars start to buy much more gas with their newfound efficiency.
2. Consumer spending is inflated for the summer and fall, making it look like TARP works.
